Biofrontera (BFRI) AI Stock Analysis

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Biofrontera

(NASDAQ:BFRI)

41Neutral

Biofrontera's stock score is weighed down by ongoing financial challenges such as negative profitability and high leverage, compounded by bearish technical indicators. While the earnings call highlights strategic progress and potential growth, the overall financial instability and weak valuation metrics significantly impact the stock's attractiveness.

Biofrontera (BFRI) vs. S&P 500 (SPY)

Market Cap

$6.61M

Dividend YieldN/A

Average Volume (3M)86.42K

Price to Earnings (P/E)―

Beta (1Y)0.41

Revenue Growth9.54%

EPS Growth74.28%

CountryUS

Employees92

SectorHealthcare

Sector Strength70

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)-4.07

Shares Outstanding8,873,932

10 Day Avg. Volume72,957

30 Day Avg. Volume86,421

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.19

Price to Cash Flow (P/CF)-1.30

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.00

Price Target Upside764.20% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Biofrontera Business Overview & Revenue Model

Company DescriptionBiofrontera Inc. (BFRI) is a biopharmaceutical company focused on the commercialization of dermatological products. The company's core products include prescription drugs and medical devices for the treatment of skin diseases, with a particular emphasis on photodynamic therapy (PDT) for the treatment of actinic keratoses and other skin conditions. Biofrontera operates primarily in the healthcare sector, targeting dermatologists and healthcare providers.

How the Company Makes MoneyBiofrontera generates revenue primarily through the sales of its dermatological products to healthcare providers and pharmacies. The company's flagship product, Ameluz, is used in conjunction with its medical device, the BF-RhodoLED lamp, for photodynamic therapy. Biofrontera earns money by selling Ameluz and leasing or selling the BF-RhodoLED lamp to dermatology clinics and medical practices. Additionally, the company may engage in licensing agreements and strategic partnerships to expand its market reach and optimize distribution channels, contributing further to its revenue streams.

Biofrontera Financial Statement Overview

Summary

Biofrontera demonstrates revenue growth but struggles with profitability and cash flow, evidenced by negative net income and operating cash flows. High leverage and dependence on financing pose risks to financial stability.

Income Statement

Neutral

Biofrontera's revenue grew by 9.49% from 2023 to 2024, indicating a positive growth trend. However, the company remains unprofitable with consistently negative net income and EBIT margins, reflecting ongoing operational challenges.

Balance Sheet

Negative

The company's high debt-to-equity ratio, driven by substantial liabilities, raises concerns about financial stability. Despite a positive equity ratio, the negative return on equity highlights profitability issues.

Cash Flow

Neutral

While operating cash flow improved in 2024, it remains negative, indicating ongoing cash flow challenges. The substantial financing cash flow suggests reliance on external funding to sustain operations.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
37.30M	34.07M	28.67M	24.10M	18.85M
	Gross Profit
19.45M	16.63M	13.49M	11.36M	9.78M
	EBIT
-17.21M	-22.68M	-22.38M	-25.85M	-8.33M
	EBITDA
-14.48M	-18.45M	934.00K	-36.76M	-7.49M
	Net Income Common Stockholders
-17.76M	-20.13M	-640.00K	-37.71M	-10.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.91M	1.42M	27.76M	24.55M	8.08M
	Total Assets
22.10M	27.93M	50.88M	53.22M	24.14M
	Total Debt
4.92M	5.40M	1.35M	0.00	0.00
	Net Debt
-983.00K	4.06M	-15.86M	-24.55M	-8.08M
	Total Liabilities
17.67M	23.14M	27.00M	41.88M	18.31M
	Stockholders Equity
4.43M	4.79M	23.88M	11.34M	5.83M
Cash Flow		Free Cash Flow
-10.28M	-24.90M	-16.24M	-26.73M	-12.37M
	Operating Cash Flow
-10.27M	-24.89M	-16.20M	-26.71M	-12.37M
	Investing Cash Flow
-3.00K	619.00K	-5.16M	-11.00K	0.00
	Financing Cash Flow
14.84M	8.41M	14.02M	43.19M	13.19M

Biofrontera Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.81

Price Trends

50DMA

0.97

Negative

100DMA

0.99

Negative

200DMA

1.03

Negative

Market Momentum

MACD

-0.05

Positive

RSI

35.10

Neutral

STOCH

6.31

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFRI, the sentiment is Negative. The current price of 0.81 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.97, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of 6.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BFRI.

Biofrontera Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARQT	57 Neutral	$1.73B	―	-113.76%	―	229.74%	70.23%
DERM	57 Neutral	$140.01M	―	-72.60%	―	-29.11%	-219.44%
VRNA	56 Neutral	$4.90B	―	-76.51%	―	―	-213.94%
EOLS	51 Neutral	$659.39M	―	-913.07%	―	31.76%	24.85%
ACRS	49 Neutral	$130.58M	―	-84.46%	―	-40.09%	-18.67%
Sector *	48 Neutral	$6.26B	1.15	-46.15%	2.69%	19.24%	1.69%
BFRI	41 Neutral	$6.61M	―	-384.98%	―	9.54%	74.28%

* Healthcare Sector Average

Performance Comparison

BFRI

Biofrontera

0.84

-1.25

-59.81%

ACRS

Aclaris Therapeutics

1.15

-0.06

-4.96%

VRNA

Verona Pharma

57.71

41.80

262.73%

EOLS

Evolus

9.54

-2.55

-21.09%

ARQT

Arcutis Biotherapeutics

12.59

2.39

23.43%

DERM

Journey Medical Corp

6.03

1.61

36.43%

Biofrontera Earnings Call Summary

Earnings Call Date: Mar 21, 2025 | % Change Since: -21.36% | Next Earnings Date: May 31, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook with record sales, FDA approval for extended treatment options, successful restructuring of agreements, and improved financial metrics. However, the net loss in Q4 and minimal unit growth for Ameluz are notable concerns.

Highlights

Record Sales Year

Sales reached $37.3 million in 2024, with an annual growth of 18.5% for Q4 and almost 10% for the year, marking a record for the company.

FDA Approval and Product Expansion

FDA approved the use of up to three tubes of Ameluz per treatment, complementing the RotoLite XL lamp launch and expanding treatment capabilities.

Phase Three Study Success

Significant results achieved in a phase three study of Ameluz for treating superficial basal cell carcinoma, with plans to submit data to the FDA.

Successful Agreement Restructuring

Restructured agreements with Biofrontera AG, reducing the transfer price from 50% to 25% for Ameluz purchases in 2024 and 2025.

Improved Financial Performance

Adjusted EBITDA improved to negative $15.3 million in 2024 from negative $19.5 million in 2023, driven by increased sales and reduced SG&A expenses.

Cash Position Strengthened

Cash and cash equivalents increased to $5.9 million as of December 31, 2024, up from $1.3 million in 2023, due to strong growth and additional capital raised.

Lowlights

Net Loss Increased in Q4 2024

A net loss of $1.4 million was reported for Q4 2024 compared to a net income of $3.5 million in Q4 2023, affected by a prior legal settlement gain.

Minimal Ameluz Unit Growth

Ameluz unit growth was approximately 2% in Q4 2024 year over year, indicating limited sales volume increase despite revenue growth.

Company Guidance

During the call, Biofrontera Inc. provided guidance highlighting a record sales year in 2024, achieving $37.3 million in sales, reflecting a 9.5% increase from 2023 and an 18.5% growth in Q4 alone. The company placed 100 RotoLite XL lamps since their launch in June 2024, and successfully negotiated a reduction in the transfer price of Ameluz from 50% to 25% for 2024 and 2025. They also achieved FDA approval to use up to three tubes of Ameluz per treatment and reported progress in a phase three study for Ameluz in treating superficial basal cell carcinoma. Financially, the company reported a net loss of $17.8 million for the year, an improvement from the previous year's loss of $20.1 million, and ended the year with $5.9 million in cash and cash equivalents. They raised $14.8 million through financing activities and maintained stable SG&A and R&D expenses. Looking forward to 2025, Biofrontera anticipates leveraging their strategic initiatives and cost management to continue growth and aim for cash flow positivity.

Biofrontera Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

Biofrontera Secures $4.2M for Strategic Growth Initiatives

Positive

Nov 22, 2024

Biofrontera Inc. has successfully secured $4.2 million through a convertible note with its principal shareholders, aimed at bolstering its operations and strategic growth in dermatological treatments. This note, maturing in 2027, can convert into common shares, offering flexibility and potential upside if stock prices rise. With these funds, Biofrontera seeks to enhance its commercial and clinical efforts, aligning with its upward revenue trajectory.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.